Green mortgages

Homebuyers across the EU could be offered better borrowing rates on mortgages in return for purchasing more energy efficient homes or committing to implement energy saving work within properties, under a ground-breaking project to define a European energy efficient mortgage product, pioneered by a unique partnership of banks, property valuers, energy efficiency businesses and utility providers.

The Energy Efficiency Mortgage Action Plan (EeMAP) initiative will explore the link between energy efficiency and borrower’s reduced probability of default and the increase in value of energy efficient properties. For banks and investors, this could lead to loans which represent a lower risk on the balance sheet and could therefore qualify for a better capital treatment. It could also ensure that banks are able to recognise “energy efficient” assets in their risk profiling, which would begin to help the market to price-in the added value of energy efficient real estate. 

The initiative has been launched by a consortium led by the European Mortgage Federation – European Covered Bond Council (EMF-ECBC). The project partners are the Ca’Foscari University of VeniceRICSEuropean Regional Network of Green Building CouncilsE.ON, and SAFE Goethe University Frankfurt. The project was covered in Bloomberg upon launch. 

In October 2017, WorldGBC's Europe Regional Network published its first report through the EeMAP initiative. Titled Creating an Energy Efficient Mortgage for Europe - A Review of Building Performance Indicators that Impact Mortgage Credit Risk, the report examines how energy efficient mortgages could work in terms of the underlying building performance assessment, and how they can support mortgage lenders and borrowers. Download the report

In June 2018, 37 major European banks launched a new energy efficiency mortgage pilot scheme. Some of Europe’s largest banks are participating in the pilot, including BNP Paribas, ING Bank, Nordea Bank and Société Générale. The banks and financial institutions involved in the scheme represent a combined lending power of over €3 trillion, equal to around 20% of the EU’s GDP.

In September 2018, WorldGBC's Europe Regional Network published a second report through the EeMAP initiative: Creating an Energy Efficient Mortgage for Europe: Towards a New Market Standard, tackles how Europe should finance the building of an energy efficiency revolution needed to slash the 40% of Europe’s carbon emissions that come from its buildings – a staggering 97% of which are inefficient. Estimates show that Europe will miss its climate targets unless it renovates at least 23,000 homes every day until 2050.

Download the report.

To read accompanying reports by EeMAP on Green Finance, Green Value, and the Impact of Energy Efficiency on Probability of Default, click here

Homebuyers across the EU could be offered better borrowing rates on mortgages in return for purchasing more energy efficient homes or committing to implement energy saving work within properties, under a ground-breaking project to define a European energy efficient mortgage product, pioneered by a unique partnership of banks, property valuers, energy efficiency businesses and utility providers.

The Energy Efficiency Mortgage Action Plan (EeMAP) initiative will explore the link between energy efficiency and borrower’s reduced probability of default and the increase in value of energy efficient properties. For banks and investors, this could lead to loans which represent a lower risk on the balance sheet and could therefore qualify for a better capital treatment. It could also ensure that banks are able to recognise “energy efficient” assets in their risk profiling, which would begin to help the market to price-in the added value of energy efficient real estate. 

The initiative has been launched by a consortium led by the European Mortgage Federation – European Covered Bond Council (EMF-ECBC). The project partners are the Ca’Foscari University of VeniceRICSEuropean Regional Network of Green Building CouncilsE.ON, and SAFE Goethe University Frankfurt. The project was covered in Bloomberg upon launch. 

In October 2017, WorldGBC's Europe Regional Network published its first report through the EeMAP initiative. Titled Creating an Energy Efficient Mortgage for Europe - A Review of Building Performance Indicators that Impact Mortgage Credit Risk, the report examines how energy efficient mortgages could work in terms of the underlying building performance assessment, and how they can support mortgage lenders and borrowers. Download the report

In June 2018, 37 major European banks launched a new energy efficiency mortgage pilot scheme. Some of Europe’s largest banks are participating in the pilot, including BNP Paribas, ING Bank, Nordea Bank and Société Générale. The banks and financial institutions involved in the scheme represent a combined lending power of over €3 trillion, equal to around 20% of the EU’s GDP.

In September 2018, WorldGBC's Europe Regional Network published a second report through the EeMAP initiative: Creating an Energy Efficient Mortgage for Europe: Towards a New Market Standard, tackles how Europe should finance the building of an energy efficiency revolution needed to slash the 40% of Europe’s carbon emissions that come from its buildings – a staggering 97% of which are inefficient. Estimates show that Europe will miss its climate targets unless it renovates at least 23,000 homes every day until 2050.

Download the report.

To read accompanying reports by EeMAP on Green Finance, Green Value, and the Impact of Energy Efficiency on Probability of Default, click here

Media

blog

How to Make Money from Climate-Proofing Your Property

Thu, 27th Sep 2018

In this exclusive blog for World Green Building Week 2018, WorldGBC's James Drinkwater and Judit Kimpian of the Architects Council of Europe explain how ‘green mortgages’ and value adding extensions could be a winning combination.

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publication

Creating an Energy Efficient Mortgage for Europe: Towards a New Market Standard

Mon, 24th Sep 2018

Creating an Energy Efficient Mortgage for Europe: Towards a New Market Standard tackles how Europe should finance the building of an energy efficiency revolution needed to slash the 40% of Europe’s carbon emissions that come from its buildings – a staggering 97% of which are inefficient. 

Read more >
press

New Report Sets Out How Mortgage Lenders Can Protect Borrowers from the Financial Risks of Climate Change

Mon, 24th Sep 2018

Today, WorldGBC launched a new report setting out a vision for how mortgage lenders and borrowers can come together to help tackle climate change by improving millions of properties across Europe. The report calls on lenders, industry and government to grow a new mass market for energy efficient mortgages and make them available to every borrower on the continent.

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press

Major European banks launch new green mortgage scheme

Thu, 14th Jun 2018

Today, the (WorldGBC) Europe network and 37 major European banks launched a new energy efficiency mortgage pilot scheme, marking a major signal from investors that green building is a key growth market for Europe.

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news

New study shows strong demand for energy efficient mortgages

Thu, 15th Feb 2018

A new study by WorldGBC ERN Partner E.ON shows there is strong demand in Europe for ‘energy efficient mortgages’ as an affordable financial solution for consumers considering an energy efficiency make-over for their home.

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news

Pioneering banks prepare to pilot energy efficiency mortgages across Europe

Mon, 12th Feb 2018

Ground-breaking new proposals for a European ‘energy efficiency mortgage’ scheme were launched by the EU-funded ‘EeMAP’ initiative, which pioneering banks and buildings experts are preparing to pilot across Europe.

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press

Energy Efficient Mortgages could play central role in Europe’s new sustainable finance strategy

Thu, 26th Oct 2017

Energy efficient mortgages could play a central role in Europe’s new strategy for sustainable finance, states a White Paper published today under the EU funded ‘Energy Efficient Mortgages Action Plan’ (EeMAP) Initiative.

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blog

What are green mortgages & how will they revolutionise home energy efficiency?

Mon, 4th Sep 2017

In this Q&A, Stephen Richardson,Technical Lead for Energy Efficiency Mortgages, discusses the principles of green mortgages and how they are key to meeting climate change targets.

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